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Tuesday, November 15, 2016

Immunity for Saudi investments in US despite JASTA

Staff writer, Al Arabiya EnglishTuesday, 15 November 2016 

Saudi investments in the United States will “enjoy” sovereign immunity and will not be affected by the Justice Against Sponsors of Terrorism Act (JASTA), the official Saudi news agency reported on Monday.

The Governor of the Saudi Arabian Monetary Agency stressed that there would be no issues over the law on Saudi investments in the US. (File photo: Shutterstock)

The Governor of the Saudi Arabian Monetary Agency (SAMA) – the Saudi central bank – stressed that there would be no issues over the law on Saudi investments in the US and that there is no intention to end pegging of the national currency, the Saudi Riyal, to the Dollar or to change the rate of exchange.

During a press conference for the annual report of SAMA that discussed domestic and global economic developments, Dr. Ahmed bin Abdul Karim Al-Khulaifi indicated that the national economy continued to grow positively in 2015, as it increased according to data of real GDP, by 3.5 percent.

However, he stated that the economic growth was influenced by the oil market, developments in the global economy and the atmosphere in the region.


JASTA

Last month, JASTA lead to a global outcry with many stated joining in to denounce the act.

Late September the Saudi foreign ministry said that the enactment of the US legislation allowing 9/11 victims to sue the kingdom would weaken sovereign immunity and leave a negative impact on all nations.

A ministerial source said JASTA would contribute to the “erosion” of the principle of sovereign immunity, which has governed international relations for hundreds of years, read a statement on the state-run news agency.

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